Walmart's Flipkart explores US listing through SPAC deal

In a bid to quicken its listing process, Walmart Inc's Flipkart is now exploring the option of going public in the United States through a merger with a blank-check company.

The Bengaluru-based online retailer's advisors have approached several special purpose acquisition companies (SPACs) and are weighing US initial public offering (IPO). Flipkart may seek a valuation of at least $35 billion in the blank-check transaction. Walmart-owned Flipkart in talks to add Cleartrip to its shopping cart

By exploring a US listing through SPAC deal, the e-commerce firm is joining other Indian firms like online grocer Grofers. Earlier last week, ReNew Power agreed to merge with a US-listed SPAC in a deal which may give the renewable power producer an enterprise value of $8 billion.

Following the merger with SPACs through the help of shell firms, Walmart would be able to take its India unit to market at a faster pace than the usual IPO route. Nomura Holdings Inc's head of investment banking for India Utpal Oza recently stated that by the end of 2021 around 10 Indian companies could go public through SPAC deals.

Flipkart started its operations in India in 2007 and currently sells over 80 million products on its platforms. In 2018, US firm Walmart acquired a majority stake in Flipkart in a $16- billion deal.